Budget 2024 Highlights: India has seen three consecutive years of 7% GDP growth, says FM Sitharaman in post-Budget briefing

On February 1, Union Finance Minister Nirmala Sitharaman delivered her sixth straight budget. At 58 minutes, it was arguably her shortest address to date.

Sitharaman rose to present the interim Budget ahead of the 2024 Lok Sabha elections due by May where she highlighted India's booming economy and announced that the country's FY25 capital expenditure outlay has been hiked 11.1% to ₹11.11 lakh crore, at 3.4% of GDP.

The interim Budget typically allocates funds to keep essential government functions running until the newly elected government presents a full Budget after the elections.

During her speech, Sitharaman also highlighted India's robust economy. "The Indian economy has witnessed a positive transformation in the last 10 years. People are looking towards the future with hope. In 2014, the country was facing enormous challenges. With Sabka Saath, Sabka Vikaas, the Narendra Modi-led government overcame those challenges."

To be sure, Sitharaman had earlier said that the Budget will be a vote on account and will have no "spectacular announcements".

Post the Budget announcements, FM Sitharaman mentioned in the press conference that India has seen three consecutive years of 7% GDP growth, while also mentioning that fiscal deficit has been brought down despite global challenges, says FM

"Inflation management, handling economic fallout of Covid, using DPI for growth of the economy and cleaning up the banking system showcases the government's performance," she added.

She also reiterated that every rating agency should take on board that we have not only cut the fiscal deficit but have also bettered fiscal consolidation.

Big numbers out of this Budget:
--Nominal GDP growth of 10.5% assumed for FY25
--FY25 divestment target ₹50,000 crore; lowered to ₹30,000 crore for FY24
--Fiscal Deficit at 5.1% of GDP fot FY25
--Fiscal Deficit for FY24 Seen At 5.8% of GDP
--Aim to reduce fiscal deficit to below 4.5% by FY26
--FY25 Capex Outlay at 3.4% of GDP
--FY24 Gross Market Borrowing seen at ₹14.1 lakh crore
--Pre-FY10 disputed tax demands of up to ₹25,000 withdrawn
--2 crore houses to be built in the next five years

Budget 2024: Schemes, incentives for citizens
Women
--Aim to increase Lakhpati Didis to 3 crore from 2 crore
--Ayushman Bharat to cover all ASHA, Anganwadi workers
--Maternal, child care schemes to come under one plan

Salaried Class
--Pre-FY10 disputed tax demands of upto ₹25,000 withdrawn
--Expansion of existing airports to continue
--No change in direct, indirect taxation

Common Man
-- 2 crore houses to be build in the next five years
-- Scheme for middle class housing coming soon
-- To expand Metro Rail, Namo Bharat to more cities
-- 40,000 rail bogies to be converted to Vande Bharat standard
-- Rooftop solar scheme to help one crore people get free electricity

Here are the highlights from FM's Budget 2024 speech

-- The Indian economy has witnessed great transformation in the last 10 years
-- The country is facing enormous challenges and government overcame those challenges with Sabka Saath Sabka Vishvaas. The fruits of development reached to every strata
-- Government focussing on four major goals- Garib, Mahila, Yuva, Annadata
-- With the pursuit of Sabka Saath in last 10 years, the government has assisted 25 crore people to get freedom from multidimensional poverty
-- Direct benefit transfers has led to savings of ₹2.7 lakh crore for the government.
-- Savings via DBT helped put more funds to PM Garib Kalyan.
-- Schemes for empowerment for the divyang reflects our firm resolve to not leave anyone behind.
-- Crop insurance has been given to 4 crore farmers under the PM Fasal Bima Yojana. This assists the annadata in producing food for the country and the world.
-- 1,361 mandis integrated with 3 lakh crore trading volume.
-- For welfare of our annadata, every year, under PM Kisan Samman Yojana, direct financial assistance is provided to 11.8 crore farmers. Crop insurance is given to 4 crore farmers under PM Fasal Bima Yojana.
-- Skill India Mission has trained 1.4 crore youth, upskilled and reskilled 54 lakh youth, and established 3,000 new ITIs.
-- Besides delivering on high growth, the government is equally focussed on a more comprehensive GDP – Governance, Development, and Performance.
-- We have macroeconomic stability. Investments are robust. The economy is doing well. All forms of infrastructure – digital, social, physical – are being built in record time.
-- GST has enabled one nation, one market, one tax.
-- India assumed the G20 Presidency during very difficult times for the world. The pandemic has led to a crisis of food, fertiliser, food, and finances for the world while India successfully navigated its way.
-- The next 5 years will be years of unprecedented development and to realise the goal of becoming a developed country by 2047.
-- Our government will adopt economic policies that will sustain growth and contribute in powering investment and fulfill aspirations.
-- The government will take up next generation reforms and build consensus with the states and stakeholders to ensure effective implementation.
-- Our government will pay utmost attention to make the eastern region and its people a powerful driver of growth.
-- The government, as announced by Prime Minister Modi, is set to introduce a scheme aimed at assisting deserving sections of the middle class residing in rented houses, slums, chawls, or unauthorised colonies to purchase or construct their own homes.
-- Scheme for affordable middle class housing coming soon.

Budget 2024: Key takeaways

Capex target for FY25
-- FY25 capex target set at ₹11.1 lakh crore, up 11.1%

Fiscal deficit target for FY25
-- FY25 fiscal deficit target set at 5.1% of GDP
-- FY25 total receipts pegged at ₹38.80 lakh crore

Market borrowing: 
--Gross Government borrowing at 14.1 lakh core via bonds in FY25
-- FY25 gross market borrowing pegged at ₹14.13 lakh crore, net borrowing at ₹11.75 lakh crore.
--The gross borrowing target for next year is lower than this year's budget estimate of ₹15.43 lakh crore.

Nominal GDP

--Nominal GDP growth assumed at 10.5% for FY25

On income tax--Do not propose to make any changes in taxation, says FM

--Section 87A of the Income Tax Act offers rebates for individuals with taxable income of as much as ₹7 lakh, effectively reducing tax liability to zero.

--Further on the direct taxation front, the finance minister proposed to withdraw outstanding tax demands up to ₹25,000 for the period up to financial year 2009-10 and up to ₹10,000 for financial years 2010-11 to 2014-15. She stated the move is expected to benefit about “a crore taxpayers”.

Budget 2024 subsidies

-- FY25 major subsidies seen at 1.2% of GDP vs 1.4% in FY24
-- FY24 food subsidy revised to ₹2.12 lakh crore from ₹1.97 lakh crore
-- FY25 non-debt capital receipts seen at ₹79,000 crore

EV boost
-- The government will expand and strengthen the EV ecosystem by supporting manufacturing and charging infrastructure.
-- To promote green growth a new scheme of bio manufacturing will be launched.

Vande Bharat push

FM says govt will upgrade 40,000 trains in India to Vande Bharat standards and setup three new railway corridors.

Tourism

--Rising economic stature, and rich and diverse heritage provide immense potential

--Govt to provide interest-free loans to States for developing tourist centres

--Govt to improve port connectivity and boost infrastructure to develop island tourism

--Positive for hotel companies and travel-related industries